Collaborative, Competitive, and Collaborative Federal System
India's federal system employs three distinct modes of interaction and relationship between the central and state governments: cooperative, competitive, and collaborative federalism.
Cooperative federalism is a vertical cooperation model where the Centre and states work together through negotiation and consensus to achieve common governance goals. This relationship is characterised by shared responsibilities, joint decision-making, and mutual support. An example of this can be seen in the GST Council, where both levels of government participate, and decisions require consensus and weighted voting. This embodies a spirit of partnership to harmonize policies and fiscal measures for economic and social development.
Competitive federalism emphasises healthy competition among states or districts to improve governance and service delivery. States compete to attract investment, provide better public services, or achieve development goals efficiently. The Aspirational Districts Programme, which motivates districts to excel and innovate by ranking and comparing their progress, is an example of this approach. This competition encourages innovation, performance improvement, and accountability in governance.
Collaborative federalism involves a broader focus on working jointly, not just between Centre and states but also across multiple administrative levels and agencies, including local governments and other stakeholders. It implies a collaborative governance approach to tailor solutions to diverse regional needs by fostering cooperation and coordination at multiple levels. This complements cooperative federalism by extending collaboration beyond formal institutions to include multi-actor engagement.
| Federalism Type | Nature of Relationship | Key Features | Example in India | |----------------------|----------------------------------------------|--------------------------------------|-------------------------------------| | Cooperative Federalism | Vertical cooperation between Centre and States | Joint decision-making, consensus, shared fiscal policies | GST Council with weighted voting | | Competitive Federalism | Healthy competition among states/districts | Ranking, incentives to improve performance | Aspirational Districts Programme | | Collaborative Federalism| Multi-stakeholder cooperation & coordination | Broader cooperation across levels and sectors | Interagency cooperation on development |
These models are not mutually exclusive and often operate simultaneously in India’s federal system to achieve balanced governance and development. Cooperative federalism ensures unity and shared goals; competitive federalism drives innovation and efficiency; and collaborative federalism enhances multi-level and cross-sectoral coordination.
In addition, shared governance in collaborative federalism involves joint implementation and monitoring of policies. For instance, programs like Sarva Shiksha Abhiyan and Mid-Day Meal Scheme leverage the strengths of both governments. The central government also incentivises states through grants, awards, or additional funding based on performance, as shown under the UDAY scheme.
References: [1] NITI Aayog (2020). 'State Rankings 2020: Aspirational Districts'. [Online] Available at: https://www.niti.gov.in/writereaddata/files/State_Rankings_2020_Aspirational_Districts.pdf [2] Government of India (2019). 'GST Council'. [Online] Available at: https://www.gst.gov.in/services/gstcouncil [3] Government of India (2020). 'UDAY Scheme'. [Online] Available at: https://www.uday.gov.in/ [4] Government of India (2017). 'Sarva Shiksha Abhiyan'. [Online] Available at: https://www.mhrd.gov.in/sites/upload_files/mhrd/files/SSA_Scheme_2017-18_Final.pdf [5] Government of India (2018). 'Mid-Day Meal Scheme'. [Online] Available at: https://www.ncrrm.org.in/sites/default/files/Mid-Day-Meal-Scheme.pdf
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